Gold Daily Update – Tuesday 08 Sept 2009

Market Commentary
Gold broke through 1000 usd/oz during the overnight session on the back of a weaker USD and later opened at 1003.00/1004.00 in New York. As the dollar continued to slump against major currencies gold peaked at 1007.50/1008.50 before profit taking dragged it lower. Support was established near 1000.00, however this level could not be sustained as the metal became well offered. It quickly retreated to a low of 993.25/994.25 and later climbed from its lows on the back of stronger oil and equity markets to finally settle at 997.25/998.25.

Technical Commentary
Gold registered its 6th up day in a row to current 999. The unit reached our short term target of 1006 which was the former 2009 high. A sustained break of 1006 puts the 2008 high of 1032 back into focus. Last week we became bullish Gold on the break of the top of a consolidation triangle at 965. Suggest raising stop loss orders on long positions to 990.